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Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)

Notices

Best Practice Project Assessment Scheme: Standard for Minimum Requirements for Engaging Contractors and Sub-Contractors on Construction Works Contracts

3. Requirements

 

(a) Where applicable in terms of the Compensations for Occupational Injuries and Disease Act (COIDA), principal contractors and sub-contractors must have a letter of good standing in terms of COIDA.
(b) Principal contractors and sub-contractors must have proof of registration with the relevant bargaining council(s), if any, duly established in terms of Part C of the Labour Relations Act 66 of 1995, as amended.
(c) A written contract must exist between the principal contractor and sub-contractor using the latest Edition of one of the forms of contracts identified in items (i) to (vi) below, unless the publishers of such forms of contracts indicate that such a form of contract is not suited for the intended application in which case a modified form of the most appropriate form of contract must be used. Note that:
• The standard forms of contract shall be used with minimal contract amendments which do not change their intended usage and shall only be amended when absolutely necessary to accommodate special needs.
• Each of the forms of sub-contract may only be used in conjunction with the relevant Edition of the principal agreement for which it has been issued, where applicable.
• The General Conditions of sub-contract (GCSC) should be used where the General Conditions of Contract for Construction Works (GCC) is used for the principal contractor.
• The MBSA Domestic Subcontract Agreement and the MBSA Labour Only Subcontract Agreement should be used where the Joint Building Contracts  Committee (JBCC) is used for the principal contractor.
(i) Construction Industry Development Board: Standard Subcontract (labour only);
(ii) The Joint Building Contracts Committee (JBCC): Nominated / Selected Subcontract Agreement (NSSA);
(iii) New Engineering Contract (NEC, as published by the Institution of Civil Engineers);
• NEC Engineering and Construction Subcontract;
• NEC Engineering and Construction Short Subcontract;
(iv) International Federation of Consulting Engineers (FIDIC);
• Conditions of Subcontract for Construction (for building and  engineering works designed by the Employer);
(v) The General Conditions of Subcontract (GCSC), as published by South African Institution of Civil Engineering (SAICE)); and
(vi) Master Builders South Africa (MBSA):
• Domestic Subcontract Agreement; and
• Labour Only Subcontract Agreement.
(d) The date on which payment to the sub-contractor becomes due and payable is the date determined in the contract, but may not be later than 30 days after the date on which the sub-contractor has submitted a statement for payment or a claim for payment to the principal contractor in relation to construction works, goods or services  completed or delivered in accordance with the contract between the principal contractor and the sub-contractor.
(e) Where a sub-contractor has not been paid within 30 days after the date on which the sub-contractor has submitted a statement for payment or a claim for payment to the principal contractor for construction works, goods or services completed or delivered in accordance with the contract, the employer shall upon a written request by the sub-contractor confirm in writing within 15 days whether the principal contractor has been paid in full or in part by the employer in respect of construction works, goods or services completed or delivered by the sub-contractor.